Bloomberg News

Bragg Communications Said to Seek $1.76 Billion Refinancing Loan

February 07, 2012

Feb. 6 (Bloomberg) -- Bragg Communications Inc., a provider of television and telephone services serving Nova Scotia, Canada, is seeking $1.76 billion in loans.

TD Securities Inc., the investment-banking arm of Toronto Dominion Bank, is leading the transaction and will meet with lenders in Toronto today and in New York tomorrow, according to a person with knowledge of the matter who declined to be identified because the terms are private.

The transaction includes a $150.8 million revolving line of credit and $1.61 billion in term loans, all denominated in Canadian dollars, Standard & Poor’s said in a Feb. 3 ratings report. Proceeds will be used to repay debt, purchase cable and telecommunications assets, and pay a one-time dividend to parent Oxford Communications Inc., S&P said.

The ratings company graded the new loans BB, two levels below investment grade, and assigned the company a BB- rating, three levels below investment grade.

Bragg has about $1.49 billion of loans and bonds maturing through 2014, according to data compiled by Bloomberg.

--Editors: Chapin Wright, Faris Khan

2819Z US <EQUITY> CN

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.


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